The Innovation Premium: Capturing the Value of Creativity
Issue 3, 1999
Strategy, Technology & innovation management

Wall Street increasingly places a higher value on innovation than on virtually any other approach to generating growth. This power to increase both the top line and the bottom line – growth in total revenue and growth in earnings – is something investors consistently reward – and pay a premium for. More than leadership change, more than mergers or acquisitions, more than renewed commitment to cost reduction, investors reward innovation. We call this effect the innovation premium.